Crypto mining is a big industry and generates a lot of revenue, and therefore the Russian Finance minister said that it should be registered and taxed. This will be a great opportunity for the country to earn a lot of money (tax) and also benefit from the crypto industry’s growth. He also said that it will be important for the government to work on their digital currency laws and make them refined. This could mean he is signalling that better tax implementation is required.
The new tax implementation on mining
The idea of the finance minister is to add crypto mining to entrepreneurial activities and then tax it accordingly. Do note that this will also give crypto mining a proper status in the country. This will be beneficial for crypto in the longer run. They are also planning legal amendments to make the taxation possible. A specific tax code will be assigned to the activity and they will introduce new laws as well. The authorities plan to implement this in the fall season.
The Parliament has already notified that they are planning to adopt new laws for crypto in the coming months. Once the authorities make the new laws it will first come to the lower house for approval and then go up. As of now, there is a lot of confusion regarding crypto. This is the reason that the new laws will properly distinguish between cryptocurrency and central bank digital currency.
Digital currency vs CBDC
CBDC and digital currency are two totally different things and needs to be understood that way. Digital currency can be created by anyone and can be both centralized and decentralized. They also have specific use cases like app development, minting, gaming and more. This makes most of the coins unique. On the other hand, a CBDC or Central bank digital currency can only be issued by the primary financial authority of the country. It is also going to be centralized but will be implemented using blockchain. CBDCs are being seen as a competition to crypto but it is actually quite different.
What are your thoughts on the Russian finance minister saying that crypto mining should be registered and taxed? And do you think this will be good for crypto in the long run? Let us know in the comments below. Also, if you found our content informative do like and share it with your friends.